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The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve DWSD Contract 6006399, a piggyback off City of Detroit Contract 6003586, to provide light-duty leasing, purchasing and ancillary services of fleet vehicles with Bob Maxey Ford, Inc. for a term of one (1) year, eleven (11) months and fifteen (15) days and a total contract not-to-exceed amount of $3,947,500.00. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
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Agenda of July 17, 2024
Item No. 2024-135
Contract No.: 6006399
Contractor: Bob Maxey Ford, Inc.
Address: 1833 East Jefferson Ave, Detroit, MI 48207
Contract Amount: $3,947,500.00
Contract Term: 7/18/24 - 7/15/26 (1 year, 11 months, 15 days)
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Detroit Water and Sewerage Department
RE: Proposed Contract 6006399
To provide light-duty leasing, purchasing and ancillary services of fleet vehicles
Bob Maxey Ford, Inc.
MOTION
Upon recommendation of Marqaicha Welch, Procurement Manager, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department, authorizes the Director to approve DWSD Contract 6006399, a piggyback off City of Detroit Contract 6003586, to provide light-duty leasing, purchasing and ancillary services of fleet vehicles with Bob Maxey Ford, Inc. for a term of one (1) year, eleven (11) months and fifteen (15) days and a total contract not-to-exceed amount of $3,947,500.00. This also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND / JUSTIFICATION
DWSD Fleet Operations is responsible for maintaining an operatable fleet of vehicles to support DWSD’s daily operations and respond timely to DWSD customer request and issues. This may include vehicle leasing, vehicle purchases, warranties, and ancillary services for light duty vehicles.
DWSD has created a Vehicle Reinvestment Plan under which it will make major investments in DWSD’s fleet, in an effort to significantly reduce total cost of ownership and optimize unit availability.
All pre-delivery vehicle servicing will be performed in accordance with accepted new car delivery preparation standards. Where applicable, each vehicle will be equipped with all legal devices required for highway operation and meet all Department of Transportation, State of Michigan, and Federal standards and requirements. If vehicle leases are awarded, terms will be considered for a base period of 24, 36 and 48 months from the award date for the first year and include a purchase option at the end of the period. Bob Maxey Ford, Inc. will provide a written inspection report dated by both DWSD and the Service Provider within five (5) days after the termination or expiration of the contract period for that vehicle.
Bob Maxey Ford, Inc. will administer all warranties for both the vehicles and parts, associated with vehicles purchased. DWSD will not be charged for such work.
Additionally, Bob Maxey Ford, Inc. will generate a report for DWSD, to include a listing of vehicle warranty repair requests not completed, and repair activity that has been completed. Bob Maxey Ford, Inc. will provide warranty repair and maintenance costs for the month, and discovery or indication of abuse by the vehicle user in excess of normal wear and tear. Minimum requirements for reporting and record keeping will be in effect for the term of the contract.
PROCUREMENT METHOD
DWSD Fleet Operation Department is requesting to piggyback on an existing City of Detroit contract 6003586. The Office of Contracting and Procurement issued a Request for Proposals (RFP) #18890 for Light-Duty Fleet Vehicle Purchases, Leases and Ancillary Services. The award to the highest ranked bidder, Bob Maxey Ford, Inc., was approved by City Council on 6/29/21.
The Vendor has agreed to the request to piggyback off the City’s contract and also confirmed that the DWSD work will not significantly change, alter or remove from their ability to provide services to the City of Detroit.
This DWSD contract was initiated through requisition #522278 which was created by Fleet Operations 6/26/24. The vendor’s insurance is current, clearances expire 10/26/24. A formal contract is routing for vendor’s signature. Per DWSD procurement protocol, Mayoral Review will also be obtained.
SUMMARY
A. Contract No.: 6006399
B. Contractor: Bob Maxey Ford, Inc.
C. Contract Amount: $3,947,500.00
D. Contract Term: 7/18/24 - 7/15/26
E. Funding Source: CIP Funds
F. GL String(s):
5721-20244-487711-644600-004104-30129-0000-000000 - 50% Water
5821-20243-497711-644600-004105-30129-0000-000000 - 50 % Sewer
G. Fiscal Year Breakdown: FY 25-26: $1,973,750.00
FY 26-27: $1,973,750.00
This proposed contract was presented to the DWSD Finance Sub Committee on July 8, 2024. Per the DWSD Procurement Policy, Mayoral Review will also be obtained.